Project Description
A subordinated loan of EUR 15 million to be extended by the EBRD to Banca Transilvania (“BT”) as part of a larger subordinated debt package expected to total EUR 75 million to be granted together by five Creditors, including the EBRD, in five distinct parallel subordinated loans.
The subordinated loan package will be used to increase BT’s quasi capital base which will allow BT to support its continuous expansion and to introduce new corporate, SME and retail banking products.
Transition Impact
The main rationale of this project is to provide support to a strong local bank with good potential to develop further and provide high standards of service to SMEs, private corporates and retail customers.
Beyond its regional base, BT’s extensive branch network will allow to develop business all over Romania, particularly with smaller clients, a fast-growing market segment.
The proposed participation in BT’s subordinated loan programme is consistent with and reinforces the objectives of the original equity investment by providing the necessary means for the bank to continue expanding its operations and efficiently serve the needs of local private clients.
The Client
Banca Transilvania, a Romanian commercial bank based in Cluj. BT is a medium-size institution with 3.9% market share of total banking assets, total balance sheet of EUR 1,383.5 million, equity of EUR 138.4 million and net profit of EUR 29.8 million at the end-2005 (audited). Total assets further increased to EUR 1,752.7 million and total equity to EUR 199.7 million (unaudited) by end-June 2006. During the first half of 2006, BT registered a net profit of EUR 16.5 million and became the fifth largest bank of Romania by total assets.
EBRD Finance
A subordinated loan of EUR 15 million.
Project Cost
tba
Environmental Impact
BT will continue to comply with EBRD's Environmental Procedures for Intermediated Financing through Local Banks, including adherence to the Environmental Exclusion and Referral List, compliance with the applicable national environmental, health and safety and public consultation requirements, and submission of annual environmental reports to the EBRD.
Technical Cooperation
None.
Company Contact
Banca Transilvania
Cluj-Napoca, George Baritiu Street, no. 8
E-mail: bancatransilvania@bancatransilvania.ro
Contact: Mihaela Nadasan - Director, International Relations
Phone: (40)-264-407150
Fax: (40)-264-407179
Business opportunities
For business opportunities or procurement, contact the client company.
For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com
General enquiries
EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com
Public Information Policy (PIP)
The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP
